but if i go in a LLC with them i get hit with the tax from the sale of the homeThe GC and the flipper were just going to split the profits from the sale of the home and they were going to pay me 2%/12% for the duration of the build. 

Even that manager needs to be really hard worker and skilled in so many different areas...sales, marketing management, hiring, firing, reservations, computer skills, and more.   

@James Thompson Transferring property from your in-laws to you can be done through a gift, sale, or trust transfer, each with different tax implications.

While not as widely discussed as interest rates, capital gains taxes also impact home sales.

The auctions, although online now, are live foreclosure auctions, i.e. the auction style sale which is the culmination of the foreclosure process. 

Quote from @Mike Hern: question is, since you have to take the depreciation, and recapture at sale - what's the point?

To defer all tax you must purchase in total at least as much as your net sale.

Numbers 2 and 14 seem to fit - the others are related to inflation and a tech bubbleclick to enlarge2.

This would allow us to come to the table with less funds out of pocket on the front end when starting construction.Is the best way to complete the transfer of ownership through a traditional sale registered with the county? 

I usually use a RE agent for sales, but I'm not sure how to pick one.